Goldman-funded startup Circle today said that three new companies have added support to its USD Coin (USDC), a stablecoin pegged to the US dollar. In total, this brings the number of partners that have enabled the stablecoin ecosystem to more than 100 exchanges, wallets, platforms, apps, and service providers.
Securitize, a technology platform for digitizing securities on blockchain, cryptocurrency payments provider DizPay and Nitrogen, a P2P network for secured loans have involved themselves in the USDC network, joining other major supporters, including Coinbase.
Earlier this month, Circle released for the third consecutive time a report that indicates the company behind US dollar-pegged stablecoin USDC does possess sufficient capital to back each individual token on a 1:1 basis.
Acting as a sort of safe haven where crypto traders can park their assets in volatile markets, USDC is an Ethereum-based ERC-20 coin, which makes it easy for wallets, exchanges, and other smart contracts to interact with the token.
How Coronavirus is Changing the Online Trading IndustryGo to article >>
The world’s largest crypto exchange Binance has recently enabled support for USDC deposits and trading on the stablecoin’s pairs against Bitcoin and Binance’s token BNB.
What’s Next on The Horizon?
And in a bid to accelerate adoption of its service to tokenize the buck, Circle said it would no longer charge fees from customers redeeming USDC into US Dollars, making it more attractive for crypto exchanges, protocols, platforms, applications, and wallets.
Stablecoins, such as USDC, are cryptocurrencies pegged to a stable asset. The topic is generating buzz in the crypto community these days. The major application for such assets has been as a mechanism for trading and hedging in global crypto capital markets.
Circle’s stablecoin goes head-to-head with other stablecoins such as Gemini Dollar, Paxos Standard, and Tether (USDT). The latter is a USD-backed stablecoin which is used as a proxy for physical money on many cryptocurrency exchanges. However, Circle’s New York BitLicense will offer a fully audited alternative, in contrast to Tether which has been the subject of controversy and regulatory scrutiny due to lingering questions about its cash reserves.